The re-sale value of a leasehold property in Bickley depends on how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year mark. Leasehold Reform legislation entitles Bickley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Bickley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold proprietor of a studio flat in Bickley on the market with a lease of a little over 72 years outstanding. Reuben on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last year we were phoned by Mr and Mrs. A Cook , who was assigned a lease of a one bedroom flat in Bickley in September 2005. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable residencies in Bickley with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed per annum. The lease expired in 2097. Having 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
An example of a Lease Extension decision for a Bickley property is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case affected 1 flat. The unexpired term as at the valuation date was 50.57 years.